| Linking Balochistan with CARs
By Syed Fazl-e-Haider
 AN official Rs400 billion plan to rehabilitate the country’s major road network by 2012 has been prepared to develop communication linkages with Afghanistan, China and the Central Asian Republics (CARs).
The Asian Development Bank has reportedly agreed to fund a $455.7 million cross-border infrastructure development programme aimed at creating a sub-regional corridor from Gwadar port to Afghanistan and Central Asia. Under the programme, a ’trade facilitation and land border crossing authority’ is being established to supervise significant land border crossings and facilitate freight and passenger cross-border and transit traffic.
China will provide financial and technical assistance to help rehabilitate 616km long Karakoram Highway. Beijing is interested in improving trade relations. Many Chinese businessmen can trade with central Asian states through Gwadar.
The development of communication links, network of roads, railways and related activities, including trade transactions, goods transportation and storage facilities is designed to develop closer trade and business links between Balochistan and Afghanistan/CARs.
By virtue of its geophysical position, Balochistan has the potential to serve as a gateway to Central Asia, specially, following the construction of Gwadar port. The port complex will provide facilities of warehousing, transit and coastal trade, commercial and industrial openings for international export-import trade.
Central Asia is home to a significant amount of the world’s known oil and gas reserves. It has a rich mineral base, fertile agricultural land, well-educated workforce, and a decent transport network. These assets lay solid foundations for economic growth, investment, and trade.
Balochistan’s geo-strategic location makes it attractive for transit traffic to the landlocked CARs. The government has approved a Rs27.3 billion ADB-assisted sub-regional connectivity and trade facilitation programme under the medium-term development framework (2005-10) to improve trade relations with Afghanistan, Iran and Central Asian states.
The ADB has agreed to offer Rs1.8 billion for the project, which includes rehabilitation of key national highways that are part of the sub-regional corridor and cross-border infrastructure development.
The planned railway line from Chaman to Spin Bodlak would facilitate the utilization of the vast potential of Balochistan’s trade with Afghanistan and through Afghanistan with the countries of Central Asia.
A road from Gwadar to Saindak, running parallel to the Iran-Pakistan border will make it the shortest route to reach Central Asia from the warm waters of Arabian Sea.
Another 515-km long highway connecting Gwadar via Panjgur, Kharan, Chaghi and Rabat up to Herat in eastern Afghanistan is on the drawing boards. This would link up Pakistan directly by road with CARs.
Pakistan will spend Rs12 billion on road sector development, which would include the Gwadar-Karachi, Gwadar-Khuzdar-Quetta-Chaman, Gwadar-Khuzdar-Ratodero highways, opening route to Afghanistan and the CARs. The Asian Development Bank (ADB) already earmarked $500 million for the construction of the ECO Highway linking Gwadar with Turkmenistan. Around $300 million will be spent in Balochistan and the remaining fund in Afghanistan and Turkmenistan.
The ADB will also provide support for carrying out the digital mapping of the NHA road network linking Gwadar to Afghanistan and Central Asian States under its regional technical assistance package. The goods produced in Pakistan can be exported to CARs at much cheaper transportation rates.
According to one estimate, the Gwadar port will have the potential to generate over $50 billion in transit trade annually in future.
The Gwadar Export Processing Zone will have assembly plants for marketing in the Gulf and the Central Asian Republics. An oil storage and refinery have also been proposed.
The proposed Turkmenistan gas pipeline project (TAP) would help develop a regional trading system.
Gwadar Special Economic Zone (GSEZ) would attract foreign as well as local investment giving a big boost to exports.
The government has decided to allow China and South Korea to set up their tax-free special development zones. Besides, China, Singapore, Japan and Malaysia could also be invited to participate in joint ventures in export-oriented industrial parks.
Gwadur’s demand for electricity is estimated to rise from 14 MW in the year 2010 to 74 MW in 2030 and 370 MW in 2050. It would be met by local power plants and Iran. The Iranian government has been requested to help meet required electricity and gas requirements of district Gwadur which includes Pasni, Ormara and Jiwani.
The potential investment areas in Gwadar include fish processing, crabs processing, cold storage, ice factories, sea-water reverse osmosis desalination plants, shrimp farming, boat building and naval architecture institute, oil storage tankers, ferry service for Karachi Ormara-Pasni-Gwadar and up to Oman and Dubai.
An efficient national highway system can contribute largely to the economy by lowering the transportation costs and increasing international traffic once the Gwadar port is completed. The government must place high priority on improving the efficiency of land border crossings to facilitate cross-border and transit traffic.
http://www.dawn.com/2005/10/17/ebr10.htm
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